Utah Contractor Practice Exam

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Prepare for the Utah Contractor Exam with comprehensive quizzes and study resources. Gain confidence by accessing multiple-choice questions designed to enhance your knowledge and skills for the licensing exam.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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Why does a contractor keep change orders on file?

For tax purposes
To get paid when the job is over
By law
UBC requirement

The correct answer is: By law

Keeping change orders on file serves important legal and operational purposes for contractors. By maintaining a record of change orders, contractors ensure compliance with various laws and regulations governing construction projects. Legal documentation is essential to clarify the scope of work, changes to the original contract, and any adjustments in costs or timelines. In the event of disputes, having these records on hand can provide necessary evidence to resolve issues related to the project, which can be critical if legal action is taken or if there's a need for mediation or arbitration. Thus, proper documentation of change orders is both a best practice and a legal necessity in the construction industry.